1. black hawk mines international
CHINESE COAL EQUIPMENT FRAUD BURNS
ALMOST 10% OFF CATERPILLAR'S 2012
EARNINGS
2. Caterpillar Inc. (NYSE:CAT) announced late on Friday that it will
take a charge of $580 million related
to accounting fraud at a recently acquired Chinese company.
Caterpillar – the world's largest heavy equipment manufacturer –
said it was writing down 87 cents a
share in the fourth quarter – almost 10% of its expected 2012
earnings of $9.10 a share.
The company is also getting rid of the senior management of
Siwei, a division of ERA Mining Machinery,
which Illinois-based Caterpillar acquired in June last year for
$650 million.
3. Doug Oberhelman, Caterpillar chief executive, said in
a statement that prior to the acquisition Siwei
management deliberately inflated the coal mining
equipment manufacturer's profits:
“The actions carried out by these individuals are
offensive and completely unacceptable. This conduct
does not represent, in any way, shape or form, the
way Caterpillar does business or how we expect our
employees to work”.
4. “Despite these actions we continue to believe that the Siwei acquisition is well aligned
with our strategy
to expand our role as a leading equipment and solutions provider for the Chinese coal
mining industry,”
said Steve Wunning, Caterpillar group president with responsibility for Resource
Industries.
“We intend to utilize Siwei roof support products and manufacturing capabilities,
combined with Caterpillar’s
strong commitment to technical innovation and safety, to help our mining customers in
China become more
efficient and safer within their mines,” Wunning added.
Caterpillar on more than one occasion last year had to cut back earnings estimates due
to reduced orders
in the construction and mining sectors – particularly from companies doing business
with China.